What is a recommended remedy for demand forecast errors?

Sharing demand information throughout the supply chain is recommended as a remedy for demand forecast errors because it fosters better communication and collaboration among all parties involved. When different segments of the supply chain, such as suppliers, manufacturers, and retailers, have access to up-to-date and accurate demand forecasts, they can align their production and inventory strategies more effectively. This transparency reduces the risk of overstocking or stockouts, as everyone can make informed decisions based on the same set of data.

Moreover, sharing this information can help in identifying trends and patterns earlier, allowing for proactive adjustments to be made. This is particularly crucial in industries where demand can be volatile or influenced by external factors. Overall, the collaboration that stems from sharing demand information leads to a more responsive and resilient supply chain, which can better manage fluctuations in demand and minimize errors.

In contrast, the other options tend to exacerbate problems rather than resolve them. Shortage gaming refers to the practice of ordering more than needed due to fears of shortages, leading to inefficiencies. Price stabilization might address some economic factors but does not tackle the core issue of demand misalignment directly. Reducing order sizes can be beneficial in some contexts but does not inherently solve the root cause of demand forecast errors. Sharing information,